CCJ Removed Credit Score dropped... :(

Smoogan

Hello,

I've been slowly improving my credit score over the past year and have been eagerly waiting for a satisfied CCJ to drop from my account this June and was expecting my credit score to go up. But instead it dropped.... why?

Nothing else has happened in the credit file apart from that!

I'm using Noddle and had a score of 1/5 until two months ago it increased to 2/5 so was expecting the removal of the satisfied CCJ to increase it to 3/5 (or at least stay at 2/5).

The rest of my file looks like -

On the electoral role. Have Next, Barclays (Bank), Capital One (Credit Card) and Three mobile all "OK" and never defaulted.

Nationwide (bank) had some arrears from 2 1/2 years ago.

EE (Trading as T-Mobile) default (will disappear in two months) so I know this will affect my score at present.

One closed account (was defaulted) with Micro Credit.

I really don't understand why this is the case... I've been trying so hard to increase my credit score as I plan on buying a house in 2-3 years time. It's so frustrating..! :mad:

Thanks
Adam

sinizterguy

Usage of credit available to you may be a factor.

If a high percentage of available credit (credit cards) is in use, your credit score can drop.

Gordon_Hose

Scores are irrelevant, a made up number for CRA's to sell at rediculous prices. No companies see these figures during credit checks.

Wait until the default drops off and see what happens.

My Noddle score keeps flitting between 4/5 and 5/5 with no discernible change to my file. You have 2-3 years before you buy a house, so don't worry about it right now.

The_Boss

How can the OP's credit score have dropped when they don't have a credit score?

The search facility must be broken at the moment.

Smoogan

The_Boss wrote: »

How can the OP's credit score have dropped when they don't have a credit score?

The search facility must be broken at the moment.

What do you mean?

matttye

Smoogan wrote: »

What do you mean?

The credit scores given by the CRA's (Experian, Equifax and Callcredit/Noddle) are just made up numbers that 'score' the information in your credit file. You don't have a central credit score and no lender gets to see what your scores with the credit reference agencies are.

In other words, the only people who know about your credit score are you and the company that scores you.

Lenders will score you based on their own criteria, the information in your credit report and the information you provide in your application form.

The credit scores given to you by the CRAs don't even take income into account, so you can see just how useless they are.

james.maperson

CRA scores are given because the vast majority of consumers simply want a quick reference as to how lenders could view them. Not going to give a good representation in many cases, but getting consumers to take the time to learn how each part of their report will be scored by lenders is harder.

Adam, it sounds like you have several accounts being well managed currently, keep using them to show an active use of credit and ideally don't take on new accounts between now and your mortgage app. Ensure that any balances are paid off before the application (do this at least 2 months in advance), no further lates or arrears, return the VR form to your council each summer to ensure continued registration, and if any defaults are still in place when the time comes, ensure they are satisfied. Good luck!

Smoogan

james.maperson wrote: »

ideally don't take on new accounts between now and your mortgage app.

Just interested to know why you recommend not opening anymore accounts over the next 2-3 years? What impact if any does it have?

Tixy

Smoogan wrote: »

Just interested to know why you recommend not opening anymore accounts over the next 2-3 years? What impact if any does it have?

I would try not to open any new accounts in perhaps the 9 month run up to applying for a mortgage, certainly none in the few months before.

But I don't think there is any reason not to open new credit card accounts in the next year or so if you wanted to or moving to a new mobile provider for example.

james.maperson

Yes I suppose I was being a little overzealous there, on the assumption that if you already have several actively used accounts, you don't want to mess about with new accounts and searches close to the time you are applying. So I agree with Tixy on timing.